TDS Bank anticipates decisions from the U.S. Federal Reserve and the final interest rate.

The Canadian investment bank TD Securities issued a research note discussing its expectations regarding the movements of the U.S. Federal Reserve concerning the interest rate cut cycle during this year.
In this regard, TD Bank expects the U.S. Federal Reserve to maintain the current interest rate of 4.50% throughout the first half of 2025. Additionally, the Canadian bank predicts that the final interest rate will reach a range lower than 3%.
Moreover, the investment bank stated that the U.S. economy needs to absorb the policies of the elected President Donald Trump – especially regarding tariffs and immigration – as his inauguration approaches on January 20.
The U.S. Federal Reserve had decided to lower interest rates at its last meeting in December by 25 basis points, bringing the main interest rate to about 4.50%.